The Bank Recovery and Resolution (No. 2) Order 2014

Failure to reach joint decision: disagreement by the Bank with joint proposals

79.—(1) This article applies where—

(a) a joint decision on the matters referred to in article 77(2) cannot be reached within the period referred to in article 78 (“the period for joint decision”); and

(b) the Bank disagrees with the group-level resolution authority about any of those matters.

(2) The Bank must exercise pre-resolution powers with the object of requiring any entity for which it is the resolution authority to take specified measures (“the measures”) to address or remove the impediments so far as they concern that entity.

(3) In a direction given by the Bank for that purpose the Bank must—

(a) demonstrate how the measures will adequately address or effectively remove the impediments in a manner proportionate to the burden or restriction imposed by the direction; and

(b) require the entity to—

(i) prepare a plan showing how it will comply with the measures; and

(ii) submit that plan within one month beginning on the date of the direction.

(4) The Bank must consult the appropriate regulator and, where appropriate, the Financial Policy Committee before determining the measures.

(5) For the purpose of determining the measures the Bank must take account of—

(a) the threat to financial stability posed by the impediments; and

(b) the effect of the measures on—

(i) the business and financial stability of the entity and its ability to contribute to the economy of the United Kingdom and other EEA States;

(ii) the EEA market for financial services;

(iii) the financial stability of any EEA State or of the EEA as a whole.

(6) The Bank must give the entity written notice of the measures, including a reasoned account of its decision to require the entity to take the measures.